Journal of Enterprise and Development (JED)
Vol. 6 No. 2 (2024): Journal of Enterprise and Development (JED)

Enhancing financial stability in Islamic banks: An investigation of determinants during the COVID-19 in Indonesia

Putri, Ardita Herniati (Unknown)
Zulpawati, Zulpawati (Unknown)
Syapriatama, Imronjana (Unknown)
Mas'ud, Riduan (Unknown)
Aminy, Muhammad Muhajir (Unknown)
Rooly, Mohamed Saleem Ahamed Riyad (Unknown)



Article Info

Publish Date
07 May 2024

Abstract

Purpose — This study investigates the determinants of Islamic banks' stability in Indonesia amidst the Covid-19 pandemic.Method — Employing a causality-associative quantitative approach, the research utilizes purposive sampling and secondary data collection from monthly financial reports on the official websites of OJK (Financial Services Authority) and BI (Bank Indonesia). Statistical techniques including normality test, multicollinearity test, t-test, f-test, R2 test, and multiple linear regression, aided by SPSS version 22 and Microsoft Excel, are employed for data analysis.Result — The results reveal that Islamic banks' total assets significantly positively influence their stability in Indonesia. Additionally, variables such as Operational Costs to Operational Income (OCOI) ratio and BI 7-Day Reverse Repo Rate (BI7DRR) exhibit significant negative effects on Islamic banks' stability. Practical implications — Understanding the influence of total assets, Operational Costs to Operational Income (OCOI) ratio, and the BI 7-Day Reverse Repo Rate (BI7DRR) on Islamic banks' stability in Indonesia during the Covid-19 pandemic can guide policymakers and bank management in implementing measures to strengthen resilience and mitigate risks, such as strategic asset management and cost optimization strategies.

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Journal Info

Abbrev

jed

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal of Enterprise and Development (JED) is published by the Faculty of Islamic Economics and Business, Mataram Islamic State University. The scope of JED includes tourism, finance, economics, business and entrepreneurship. JED focuses on theoretical and applied research from all fields in ...